Is The Game Up?

The US financial markets blew up in 2008 in the aftermath of a housing crisis, a bubble caused by easy money and governmental influence, one far from in conclusion. According to the Obama administration, their policies pulled the US economy from the brink of depression and have jump started a recovery. And I am King Tut.

Birth Pangs. Day by day since, there continue to be warning signs of global financial collapse across the globe. From France burning two years ago to London two weeks ago, the natives are restless and are lashing out.

Broken in spirit, void of incentive and corralled from leadership, the youth who were promised a gravy train from a central planning government are violently attacking now that the money has run out. A history of Margaret Thatcher would seem appropriate.

Europe, joined at the hip in promoting global socialism, and through inclusion in the EU, search for stability by limiting member governments from operating independently with the necessary flexibility to innovate and increase production and individual wealth. Who could have seen the negative fall out coming?

Nigel Farage for one.

Farage hits a home run, one which should be absorbed as a shot heard round the world. Investors Business Daily notes in today's edition that Euro Zone debt fears start to hit France as the 10 year yield spread between France and Germany has tripled in recent weeks, which could be foretelling the financial contagion is spreading to the heart of Europe, just as Farage predicted.

Former FED Chair Alan Greenspan, The Maestro, who contributed to the easy money platform the housing crisis sprang from, weighed in on the Euro today, noting “The euro is breaking down and the process of its breaking down is creating very considerable difficulties in the European banking system,” Greenspan continues the European contraction would hurt profitability and stock values of American companies. You think?

The more central planners plan, the more their plans fail. The more their plans fail, the more they plan. Continue as they must to contain the fallout, we know one thing. Well, it won't work.

Greenspan correctly pointed out “The problem is that there is a growing cleavage in the economic and analytical and banking circles as to whether the Euro, which is the crucial issue here, should be 17 countries with very significantly different cultures” regarding the role of government, consumer spending and inflation. Indeed, while there can be alliances to further trade agreements, each country should have independent currencies for sound monetary policies to anchor allowing the necessary flexibility needed to create sustainable growth.

This is not the case in Europe, and with America moving swiftly to a cradle to grave entitlement nanny state, a global collapse is all but certain. PIIGS don't fly. Bailouts will lead to more bailouts, and at some point the money runs out.

Farage is quite right in hoping market principles derail the central planning elites prior to the spirit of the individual being lost for eternity. It is the principals of free market capitalism that provides the best path prosperity, and we must seek out and associate with leaders who are rock solid on this principle before the game is up.

Of course, in America, we always have the voting booth to cleanse out those void of our founding principles. At least for now.